Analysis: UK finance bosses press to revive London's allure

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Some of Britain's top finance executives, fearful London is losing out to New York and rival European cities, are pressing the government to broaden an array of reforms aimed at attracting big-ticket corporate listings

London has seen a 40% decline in publicly-listed companies since 2008 and has struggled to match growth in rival markets in Amsterdam, Paris and Frankfurt, while Amsterdam overtook London as a share trading venue soon after Brexit in 2021.agenda comprising over 30 proposed changes to existing rules.

These requests include financial sweeteners for firms to incorporate, list and base headquarters in Britain, as well as tax breaks on investment returns and dividend income to tempt more investors to back UK-listed companies. The Financial Conduct Authority began a second phase of consultation on listing rules reforms last week, while the government on Tuesday called for feedback on ways to measure the performance of regulators against their new objective of keeping London a globallyBritain has already consulted on dozens of reform proposals, many of which are part of the financial services bill being finalised in parliament.

Finance bosses expect the government to propose reforms for unlocking pensions investment in the coming months, although some pension fund bosses have expressed concerns about any attempt to compel them to invest in riskier fledgling British businesses.for the City in September, timed for the annual political party conferences.

"A comprehensive package of measures across listings and other areas ... is needed, rather than a siloed approach," said Scott McCubbin, UK and Ireland IPO leader for consultancy EY.Supporters of a more vibrant UK stock market are also increasing pressure on bankers managing IPO processes to challenge assumptions about London's poorer liquidity or post-IPO performance, relative to rival venues., a company to which Number 10 has assigned national strategic importance.

 

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